362 HISTORICAL AND POLITICAL. 



The resolution passed by the Board was as follows : 



" Plan of relief adopted by the Board of Directors of the Farmers' Alliance 

 Exchange of Texas, for the purpose of assisting the members of the Farmers' Alliance 

 of Texas in purchasing their supplies for the coming year, and selling their products 

 to the best advantage. 



" First. The members of all Sub- Alliances wishing to avail themselves of the 

 advantages to be offered by the Exchange, shall make a full showing of their collec- 

 tive responsibility, and an estimate of the amount of commodities they will require 

 advanced on time after April, 1888, and a satisfactory showing that they are able and 

 willing to pledge cotton to at least two times the amount of advances asked. 



" Second. The county business agent from each county desiring to avail them- 

 selves of the benefits of the Exchange, shall give a good bond to the president of this 

 Exchange, in a sufficient amount to cover all the transactions he will be called upon 

 to perform. And it shall be his duty to make a careful examination of the records 

 and the securities offered by any Alliance in his county, arra report on a blank form 

 to the secretary of this Exchange every item in regard to the business that may be 

 required. It shall be his duty to have recorded in his county all obligations taken 

 therein, and send certificates of record to the secretary, and perform such other duties 

 as may be imposed on him by the general business management. 



" Third. The secretary and two other members of this board, as may be herein- 

 after chosen, shall sit as a Board ,of Acceptance, and it shall be their duty to examine 

 the application of every Alliance desiring to do business with this Exchange ; and 

 when they are satisfied with the showing made by a Sub- Alliance, and report favor- 

 ably, then the business manager shall be authorized to deal with that Sub- Alliance 

 according to the terms of the proposition so accepted, but no further. And the busi- 

 ness manager shall in no case advance more than he has been authorized by the 

 said Board of Acceptance. 



" The Board of Acceptance shall also make estimates of the amounts of purchases 

 necessary to meet the demands of the accepted contracts, and shall demand of the 

 business management purchase adequate to meet such necessities in a satisfactory 



As shown above, this was not a proposition to do business on time. 

 It was a call upon the membership to make known their wishes as to 

 whether they desired the Exchange to undertake the business as out- 

 lined in the circular letter. This letter was sent out about December i, 

 1887, and responses came in so slowly that, on the first of January, the 

 time was extended. The membership clamored for more time in which 

 to prepare the notes, and for advances to be made earlier than the first 

 of April. To this clamor the Board of Directors yielded, and notes were 

 received and accepted up to May, and goods were supplied freely in 

 March. Had the business been carried out as outlined in the plan, the 

 result might have been different ; but the Board departed from that plan 

 by accepting note obligations very much in excess of the prescribed 

 limit of four times the actual cash capital paid in. When the Board of 

 Directors met in March, they found that only about $17,000 of the 



